West Qurna-2 oil field (archive)

MOSCOW, June 16. /ITAR-TASS/. Russian oil major Lukoil estimates the investments in construction of the first branch of the pipeline that will connect the West Qurna-2 field in Iraq with an export hub at $850 million, CEO Vagit Alekperov said in a news conference on Monday.

“One pipeline line with a capacity of 3 million barrels per day will cost around $1 billion-850 million,” Alekperov said.

The contract to develop the field includes the construction of two 120 kilometer lines of the Tuba-Fao pipeline, which will link the Tuba tank farm with the country’s major export hub Fao located on the Persian Gulf.

The company has already started oil production on the field with the daily output exceeding 200,000 barrels. Lukoil, which holds 75% in West Qurna-2, has invested over U.S. $4 billion in the project.

The company also plans to create a joint venture with gas giant Gazprom for the development of the Medvezhye field in the shelf of the Barents Sea by the end of this year.

“We have defined the concrete project, it is the Medvezhye block, on which development we have a cooperation agreement with Gazprom. The agreement is signed. The talks on establishing a joint venture are going on. I hope it will be established by the end of this year,” Alekperov said.